Nintendo’s profit rises despite shortages of computer chips

Category: Business


Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. console / ˈkɒn soʊl / (n.) – a computer system with different control buttons made for playing video games

    The new console has fewer control buttons compared to the previous one.

  2. dent / dɛnt / (v.) – to have a reducing or weakening effect on something

    The bad news about their products dented their sales last month.

  3. turn to (something) / tɜrn tu / (phrasal v.) – to start doing or using something to deal with a situation

    Since it rained last weekend, we just turned to movies for enjoyment.

  4. wear off / wɛər ɔf / (phrasal v.) – to gradually decrease or stop the effect of something

    Their sales from their old marketing strategy are starting to wear off.

  5. cumulative / ˈkyu myə lə tɪv / (adj.) – adding together all of the things that came before

    The cumulative points of the team allowed them to proceed to the next round.


Read the text below.

Nintendo’s profit in the April-June quarter rose 28% from a year earlier on healthy demand for its games, although its console sales were dented by a shortage of semiconductors.

The Japanese video game maker behind the Super Mario and Pokemon franchises said its profit in the last quarter totaled 118.9 billion yen ($895 million), up from 92.7 billion yen in the same period in 2021.

Quarterly sales fell 4.7% to 307.4 billion yen ($2.3 billion), according to Kyoto-based Nintendo Co.

Other game makers, such as Sony Group Corp., automakers like Toyota Motor Corp. and other manufacturers have been hurt by shortfalls in supplies of the chips that run most modern products.

While those supply chain disruptions are largely due to the pandemic, game companies got a big boost in demand from COVID-19, which had people stuck at home and turning to games for entertainment. As pandemic precautions ease, that spike in sales is wearing off.

Hit games have also driven console sales, such as “Animal Crossing: New Horizons.” Among the games that were released and did well during the last quarter were “Nintendo Switch Sports,” which sold 4.84 million units, and “Mario Strikers: Battle League.”

Previously released games with strong sales included “Kirby and the Forgotten Land” and “Mario Kart 8 Deluxe.” Sales were also strong for downloaded digital games.

Nintendo sold 22% fewer Switch consoles during the latest quarter, at 3.4 million units, compared to the same period last year. Cumulative sales topped 111.08 million units.

The company expects to sell 21 million Switch machines for the fiscal year. More than 100 million users played the Switch over the last year, according to Nintendo.

The company kept its profit forecast for the fiscal year through March 2023 unchanged at 340 billion yen ($2.6 billion).

This article was provided by The Associated Press.

Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Game companies got a big boost in demand from COVID-19. Are you one of the people who turned to games for entertainment when the pandemic happened? What other forms of entertainment did you turn to? Discuss.
  • Why do you think people like video games (ex. give a great mood boost, encourage social interactions)? Would you ever spend time and money on video games? Why or why not? Discuss.

Discussion B

  • Some businesses were shut down while others increased their sales during the COVID-19 lockdowns. What businesses were most necessary for you during the pandemic (ex. delivery services, home improvements)? Why? Discuss.
  • Some analysts forecast that several industries will recover from the COVID-19 pandemic. What industries do you think will do so (ex. tourism, retail)? Why do you think so? Discuss.